Medicare Advantage — It's Not Going Away

  • Originally published August 3, 2010 , last updated January 29, 2016
Medicare Advantage — It's Not Going Away

Just a few years ago, The Medicare Advantage market was limited to only a few carriers in limited geographical areas, mostly metropolitan areas. Now, MA plans are available in nearly every U.S. county. Why the change? Consider the following:

  • Low-premium and $0-premium plans are attractive to seniors. Limits on maximum out-of-pocket expenses are common and range from $1,000 to $5,000.
  • Co-pays are generally affordable for hospital stays and primary care physicians. Plans range from $150 per hospital stay to $265 per day for the first few days in a hospital. Primary Care Physician co-pays range from $5 to $15 for most plans.
  • Value-added benefits are provided on some plans, such as physical fitness programs and additional benefits for vision, dental and hearing.
  • Plans are guarantee issue with only End-Stage Renal Disease questions permitted.
  • Commission rates have increased, making the market more attractive to an agent. Agents can earn from $250 to $330 per issued case, depending on the carrier.

So, is Medicare Supplement dead? Absolutely not. Medicare Advantage plans must be equal to or better than Original Medicare. They are unlike Medicare Supplement plans that pay after Original Medicare pays in exchange for a monthly premium.

Senior Market Sales, Inc. believes that the growth of Medicare Advantage plans allows agents to serve seniors not previously likely candidates for Medicare Supplement. Combined with the demographic shift to a growing senior market from 41.1 to over 60 million seniors by 2020, the health insurance market place is bigger than ever before.

The agent that is trained and equipped with a full line of Medicare Solutions products to include Prescription Drug, Medicare Supplement and Medicare Advantage is in a position to make more sales than ever before.

To get certified to sell Medicare Advantage or contracted with one of our carriers call the SMS Medicare Solutions department at 1-877-645-0147.